The Real Estate Information Center (REIC) is intensifying its efforts to gather comprehensive data to avert potential crises in Thailand’s property sector. Despite its success over the past two decades, REIC faces challenges in securing cooperation from various agencies to provide timely and accurate data.
Key Takeaways
- REIC has been an alert system for the property sector for 20 years.
- Cooperation from government and private sectors is crucial for data collection.
- The 1997 financial crisis highlighted the need for a national real estate information center.
- REIC collects data across seven property categories and conducts field surveys.
- Challenges include lack of cooperation from developers, manpower, and budget constraints.
Post-Crisis Response
Following the 1997 financial crisis, stakeholders recognized the need for a national real estate information center. The World Bank recommended that the Government Housing Bank (GHB) study the establishment of such a center. In 2004, REIC was established as an independent agency under GHB, collecting data across various property categories.
Data Collection Goals
REIC aims to ensure accurate, reliable, and timely databases for developers to make informed decisions. Initially, data was collected from agencies like the Lands Department and the Bank of Thailand. However, REIC expanded its data collection to include field surveys, particularly for the residential market.
More Data Needed
REIC has developed various indexes and a program to connect data on land allocation permits and property transfer registrations. However, more comprehensive data is needed. For example, local administrative organizations should provide detailed information on construction permits and project completion status.
Data-Driven Alerts
REIC’s analysis and interpretation of real estate information serve as warning indicators. For instance, in 2019, REIC predicted that revoking the loan-to-value easing would dampen the market. The alert system has shown clear and timely results, helping developers pause new launches when necessary.
Coping with Hot Issues
In 2017, concerns about a property bubble arose. REIC clarified the situation by presenting related information, such as price indexes and housing registrations. Recently, REIC was asked about condo projects where the foreign ownership quota has reached 49%, highlighting the need for detailed information.
Challenges Ahead
REIC faces challenges, including cooperation from data owners, manpower, and budget constraints. The agency struggles to attract talent due to less competitive employment benefits. A proper budget to cover actual expenses is estimated at 300-400 million baht. The future of REIC depends on the bank’s board of directors’ decision after the current acting director-general’s retirement in 2024.
REIC aims to expand information coverage and conduct deeper analytics to assist the government in monitoring the property sector effectively.
Sources
- Bangkok Post – Real Estate Information Center targets better data gathering to head off crises, Bangkok Post.
